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Required information Exercise 6-16 Working with a Segmented Income Statement; Break-Even Analysis [LO6-4, LO6-5] [The...

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Required information Exercise 6-16 Working with a Segmented Income Statement; Break-Even Analysis [LO6-4, LO6-5] [The following information applies to the questions displayed below.) Raner, Harris & Chan is a consulting firm that specializes in information systems for medical and dental clinics. The firm has two offices-one in Chicago and one in Minneapolis. The firm classifies the direct costs of consulting jobs as variable costs. A contribution format segmented income statement for the company's most recent year is givern Office Total Company Chicago Minneapolis Sales Variable expenses Contribution margin Traceable fixed expenses Office segment margin Common fixed expenses not traceable to offices Net operating income $487,500 263,250 224,250 109,200 115,050 100.0% 54. 0% 460% 22.4 $97,500 29,250 68,250 50,700 23.6% $17,550 100% 30% 70% 52% $390,000 234,000 156,000 58,500 18% $97,500 25% 100% 60% 40% 15% 78,000 10:08- $ 37,050 7.6% Exercise 6-16 Part 2 2. By how much would the company's net operating income increase if Minneapolis increased its sales by $48,750 per year? Assume no change in cost behavior patterns Net operating income increase

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